05/30/09
Filed under:
General,
Real Estate
Posted by:
Lillian Wong @ 3:43 pm
Construction costs dropped 5.5 percent in Phoenix during the first four months of 2009, according to new data released by Rider Levett Bucknall, an international consulting and research firm with offices in the Valley.
The RLB Quarterly Construction Report attributes the decline in construction cost indices here and throughout the country largely to decreasing structural steel costs, but also to lower bids submitted by suppliers and contractors hungry for work.
“Contractors’ concerns about the availability of work have overshadowed commodities’ role in driving construction costs,” the report says.
Cost declines were steeper in Denver (7.5 percent) and Seattle (7.9 percent). The smallest decline (3.2 percent) was recorded in Boston.
Construction costs remain a relative bargain in Phoenix compared with other metro areas.
The average construction cost of prime office space in Phoenix ranges from $150 to $250 per square foot. In San Francisco, the range is $195 to $300. The average construction cost of a general hospital in Phoenix ranges from $305 to $430 a square foot. In Washington, that range is $450 to $585.
For more: www.rlb.com.
Phoenix Business Journal - by Jan Buchholz Friday, 05.29.09
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